CBS Market Analysis & Research 3 — Questions and Answers
Question 1: A strategist needs to determine whether declining sales are caused by price sensitivity or product quality issues. The most appropriate research method is:
- Ethnographic observation
- Conjoint analysis (Correct answer)
- Brand tracking survey
- Retail audit
Correct answer: Conjoint analysis
Conjoint analysis measures how customers value different product attributes, isolating price sensitivity versus quality preferences.
Question 2: Market research reveals a segment with high unmet needs but currently zero revenue generation. In opportunity mapping, this segment is classified as:
- A saturated market
- A whitespace opportunity (Correct answer)
- A declining market
- A commoditized segment
Correct answer: A whitespace opportunity
Whitespace opportunities are underserved or unserved market segments with unmet needs that represent untapped revenue potential.
Question 3: Which data collection bias occurs when survey respondents answer questions in a way they believe the researcher wants to hear?
- Sampling bias
- Confirmation bias
- Social desirability bias (Correct answer)
- Anchoring bias
Correct answer: Social desirability bias
Social desirability bias occurs when respondents provide answers that reflect positively on themselves or align with perceived researcher expectations.
Question 4: A company finds that its product's price elasticity of demand is -2.5. This means a 10% price increase will result in a:
- 25% increase in quantity demanded
- 25% decrease in quantity demanded (Correct answer)
- 2.5% decrease in quantity demanded
- 10% decrease in quantity demanded
Correct answer: 25% decrease in quantity demanded
With elasticity of -2.5, a 10% price increase causes a 25% decrease in quantity demanded (10% × 2.5 = 25%).
Question 5: During competitive intelligence gathering, a strategist monitors competitor job postings to infer R&D priorities. This is an example of:
- Industrial espionage
- Open-source intelligence (OSINT) (Correct answer)
- Primary market research
- Patent analysis
Correct answer: Open-source intelligence (OSINT)
Using publicly available information like job postings to infer competitor strategy is a legitimate OSINT technique.
Question 6: A company's market research shows high brand awareness but low purchase intent. The strategic gap most likely lies in:
- Distribution and availability (Correct answer)
- Brand recognition and recall
- Advertising reach and frequency
- Market size estimation
Correct answer: Distribution and availability
When awareness is high but purchase intent is low, consumers know the brand but face barriers at the conversion stage, often related to distribution, pricing, or value proposition.
Question 7: In customer journey mapping, which stage represents the moment a potential customer first becomes aware of a problem they need to solve?
- Consideration stage
- Decision stage
- Awareness stage (Correct answer)
- Loyalty stage
Correct answer: Awareness stage
The Awareness stage is when a prospect recognizes a pain point or need, triggering the beginning of their buyer journey.
CBS Market Analysis & Research 3
A strategist needs to determine whether declining sales are caused by price sensitivity or product quality issues.
The most appropriate research method is: